Rental Yield Calculator

Before purchasing commercial property, it’s
important to project your rental yield—to
ensure your investment is profitable in the
long-run. With this
investment property
calculator from Rethink Investing, you can get
a full breakdown of your growth potential in
just a few easy steps.

Calculate
Click here to view more years Start over Share link
Purchase price
Total loan (assuming 70%)
Deposit (30%)
Stamp duty
Valuation cost
Solicitor cost
Other purchasing costs
Total cash required
Year 1 net rental income
Yearly review
Term of ownership
Loan interest rate
Debt reduction (1=true. 0=false)
% of profit used for debt reduction

How to use this calculator

To use the rental yield calculator and get your forecast, simply enter the following information:

  1. 1. Enter your purchase price and loan percentage. Based on this, the calculator will generate your total deposit amounts.
  2. 2. Enter your stamp duty, solicitor cost, valuation cost, as well as any other purchasing costs. Based on this, the calculator will generate your total amount of cash required.
  3. 3. Enter your first year net income, rental increases (percentage), term of ownership and loan interest rate
  4. 4. Confirm whether you will be using rental profits for debt reduction and if you are how much of this profit WON’T go to debt reduction.
  5. 5. Click “Calculate” to see your results.

If you’d like to discuss or clarify your breakdown with the help of an experienced professional, contact our friendly team of buyer’s agents.

Contact us

How does this calculator work?

The calculator takes multiple factors into account, to ultimately determine your projected returns. Many factors influence your net return on investment: including rental income,
stamp duty, loan interest rates and other purchasing costs. While this tool is able to predict your overall returns with accuracy, it is only intended for use as a guide.

Calculating your income

To determine your overall growth, it is important that the calculator takes your rental income into account. As a commercial property investor, rental yields will form an
important part of your taxable income. The rental yield calculator needs to know this information so it can work out the benefits you may be able to access e.g.
depreciation and negative gearing.

Things to keep in mind

It’s important to bear in mind that this calculator does not account for factors such as unexpected expenses, depreciation or natural events. These factors can impact your overall
profits either negatively or positively, but are impossible to predict. With this in mind, it’s advisable to contact a property investment expert: they can help you better understand
whether your potential investment is right for you.

Disclaimer

The information which you calculate from this calculator is intended for use by you as a guide only. This simulation and the resulting calculations are based on assumptions and do not relate specifically to
your individual objective and personal financial position. The figures and formulae used within this calculator may change at any time without notice. We have assumed for the projections that interest
rates do not change, the structure is interest only using excess cash flow to pay down the principal and fixed depreciation amount. Rethink Investing accepts no responsibility for any losses arising from
any use of or reliance upon any calculations or conclusions reached using the calculator.